TOKYO Feb 20 Japanese toy maker Tomy Co.
(7867.T) on Tuesday cut its annual net profit forecast by
two-thirds, blaming weak demand for toys as consumers spent more
on Nintendo Co.'s 7974.OS new video game players.
Tomy, whose main rivals include Namco Bandai Holdings Inc.
(7832.T), said it now expects to post a group net profit of 1.7
billion yen ($14 million) in the year to March, down from its
previous forecast for a 5 billion yen profit.
The average of two analysts polled by Reuters Estimates had
projected a net profit of 4.4 billion yen.
Tomy said sales of character goods and card games for boys
were sluggish in Japan, in large part because of the success of
Nintendo's DS handheld game device and the next-generation Wii
game console, which stole demand for traditional toys.
The company left its sales forecast unchanged at 170 billion
yen, reflecting the strong performance of a unit that wholesales
That business generates lower margins than its core toy
business, however, and therefore could not make up for the profit
shortfall on toys.